Tag Archives: government contracting

WIPP National Partner of the Month – October 2015: Lynlee Altman

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Lynlee

WIPP National Partner of the Month – October 2015

LynLee Altman, President and Founder of Pinnacle Construction Development Group, Inc. – Cleveland, OH

 

We sat down with Lynlee to hear a little more about her company and her relationship with WIPP…

 

Tell us a little about your company and its mission.

Pinnacle Construction is a general contractor specializing in unique, complex, and safety-critical construction.  As a full-service design-build company, Pinnacle delivers one-of-a-kind projects nationwide, including anything from recreating the surface of Mars to blastproof access control points.  We have successfully tackled numerous high profile projects that would intimidate most other construction firms.  Accelerated timelines, hazardous environments, atypical engineering specifications, environmental sensitivities and historic preservation are all par for the course for Pinnacle, where failure is not an option.

Have you always been an entrepreneur?  If not, what, or who, inspired you to take this leap?

Unlike the typical entrepreneur who grew up with a lemonade stand or selling girl scout cookies, I would consider myself to be an accidental entrepreneur. I cut my teeth working for larger businesses and my small business began as more of a night-job.  Eventually, it became clear that my night job was really where my passion lied, and I made the decision to devote all of my time to Pinnacle.

What has been your biggest lesson learned in working with the Federal Government? 

Teaming with other businesses is the key to growth. I call it Co-op-etition, a combination of cooperating and competition.  Rather than viewing other companies as competitors, there is tremendous opportunity in building them up.  Pinnacle’s very first client is Pinnacle’s largest subcontractor today.   Over the years, we have built trust and a strong history of performance with our teaming partners, and that relationship has enabled us to complete things together that we didn’t have the capabilities to complete alone.

Do you have a contracting success story that you are proud of? 

As a firm believer in the capabilities of small business, I am most proud when Pinnacle competes against large businesses and triumphs.  The personal attention and true teaming nature that we can give to clients sets us apart from a large business working on hundreds of jobs across the country simultaneously.  Our clients understand that they have our full attention, and they are, at that moment, our most important project.   The clients and agencies that embrace that differentiating factor, are the people that we enjoy working with the most.

Tell us about your experience as a WIPP Member? What resources/value has WIPP provided that has been helpful to you and your company?

WIPP has been instrumental in introducing me to the right people.  In the federal marketplace, there are a select group of individuals who are committed to building small businesses. These amazing people, all of whom are known by WIPP, recognize the importance of small businesses to the health of our country and economic policies, and many of them have dedicated their lives to the cause.  These individuals have truly impacted the federal market place, and if you are willing to match their time and efforts, they will help you build a strong business.

“Fair Pay” Rules Just Aren’t Fair

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women comp

By John Stanford, WIPP Government Relations

Women Impacting Public Policy (WIPP) recently submitted comments on proposed regulations that would require federal contractors to disclose labor violations from the past three years. This blog accompanies those comments as a summary of WIPP’s position. For more details or if this impacts your business, I encourage you to read the full comment here.

Last summer, President Obama issued an Executive Order with the goal of barring bad companies from winning federal contracts. WIPP, along with most in the contracting community, agrees that companies that follow the rules should not have to compete against companies that break them for federal contracts.

In May, the Labor Department and the FAR Council (overseers of contracting rulebook, “the FAR”) proposed how the President’s order would be implemented. It turns out, as with most things, the devil is in the details.

The proposed regulations require federal contractors and subcontractors to disclose violations of 14 federal labor laws and equivalent state laws from the previous three years. Exemptions were provided for companies with contracts valued less than $500,000. As proposed, prospective federal contractors would need to declare if they had labor violations in the previous three years when submitting an offer. During an initial evaluation, contracting officers would see that declaration (a simple “yes” or “no”), without any additional detail or explanation.

Later, if a contractor were likely to win an award, the contracting officer would have to decide if the contractor is a responsible company (a requirement of all government contracts already). It is in this phase that details like appeals, remediation, or mitigating factors could be explained. Contracting officers will attempt to identify companies with “serious”, “willful”, “repeated”, and/or “pervasive” violations and not award them contracts. Companies with minor violations could still be considered responsible and win contracts.

WIPP responded to the regulation during the public comment period expressing concerns with the new system and how it could negatively impact women-owned businesses, including those who had no history of unsafe or unfair work practices.

Notably, the proposals were incomplete as the Labor Department and FAR Council chose not to include what state labor law violations must be reported. It is impossible to gauge the impact of a regulation – the reason for comments– when missing significant portions.

What was in the proposals, however, was equally concerning. WIPP’s comment discusses how, in some cases, violations that require reporting will not be be fully adjudicated. That is, companies would have to report decisions against them that may ultimately be overturned – as nearly a third of NLRB decisions have been.

This is compounded by WIPP’s worry that simply having violations on record will “blacklist” companies without providing any opportunity to offer explanation. With limited resources and time, contracting officers may elect to avoid companies with any disclosed violations, despite the intent of the order to only bar violations of a certain severity.

The comment also considers burdens on subcontractors who similarly must report violation history, and the lack of resources the government may face to answer questions about weighing different labor violations. Moreover, the onus to collect and judge subcontractor violations falls to primes, a strategy the Labor Department itself questions.

WIPP’s final concern is that this rule is one of many in a disconcerting trend of new regulations that specifically target federal contractors. Earlier this year, regulations raised the minimum wage solely for workers on federal contracts. New requirements regarding sick leave are expected to come later this year. These make contracting with the federal government more onerous, particularly for women entrepreneurs seeking to enter the market.

Without question, WIPP supports efforts by the federal government to rid the contracting environment of businesses with a history of abusive and neglectful violations. In doing so, the government levels the playing field for the millions of businesses playing by the rules. But the proposals commented on will not achieve this goal. Instead, they will make it harder to be a contractor – pushing the innovative products and services of women-owned businesses out of the federal market.

Bonds: An Important Weapon In Any Contractor’s Arsenal

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It is vital that construction contractors, regardless of tier or trade, understand the basic principles of contract surety bonds. An understanding of how bonds are used in construction; and, importantly, how the surety company prequalifies the contractor is critical.   Surety Bonds are mandated by various federal, state and local laws, but may also be required by the private sector as well. Recently, as part of WIPP’s Give Me 5 webinar series, bonding specialist Ellen Neylan, along with construction counsel, Jennifer M. Horn and Maria Panichelli, discussed these issues in detail. Below are some highlights of the discussion.

The Performance Bond secures the contractor’s promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed. The Payment Bond protects certain laborers, material suppliers and subcontractors against nonpayment. Since mechanic’s liens cannot be placed against public property, the payment bond may be the only protection these claimants have if they are not paid for the goods and services they provide to the project.

In order to obtain a bond, the contractor must be prequalified. Sureties should not bond a contractor that does not meet their prequalification standards. The surety company’s pre-qualification process carefully analyzes the contractor’s entire business operation, much like a bank, because the surety is backing the promise that the contractor will perform the contract. The surety determines the contractor’s ability to meet current and future contract and financial obligations.

The parameters of bonding on a project are often dictated by the law. For example, the Federal Miller Act requires surety bonds for the “construction, alteration, or repair of any public building or public work of the United States for an amount greater than $100,000.” When filing surety claims against Miller Act bonds, subcontractors should be aware that timing is critical. Even though no notice is required, first tier subcontractors must wait 90 days from non-payment to give the bond principal a chance to make payments. In addition, all suits must be filed within one year of last work performed or materials supplied. It’s very important that the claim notice clearly state the amount being claimed, the name of the party to whom labor or supplies were provided, and that the subcontractor is making a formal claim against the bond principal.

The Surety will not pay claims without regard to their merits, but it should be expected to respond to claims promptly and, if denying a claim, offer an explanation. Finally, the Surety, with the aid of legal counsel, can assert all defenses of its bond principal, unless precluded by bond or contract language. Examples of defenses might include: breach of contract; recoupment/setoff; and failure to mitigate damages.

For more detailed information about this important topic, tune in to the recent webinar:

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Give Me 5: Construction Unit – Bonding and Liens 

As a federal contractor in the construction industry, it is imperative that you obtain proper bonding – but this is a highly complicated subject that could end up costing you an incredible amount of money if you don’t fully understand the nuances and ramifications. This webinar unravels the most important aspects of bonding and liens providing you with important guidelines for success.

Course Instructors: Jennifer Horn, Partner, Cohen Seglias Pallas Greenhall & Furman PC & Maria Panichelli, Associate, Cohen Seglias Pallas Greenhall & Furman PC and Special Guest: Ellen Neylan, Founder, Surety Bonds Associates

Listen to the Podcast | View the Presentation